Belfast, Stourbridge and Inverness are among the best places to go for cash-strapped first-time buyers, Abbey National research reveals.
With a deposit of £4,000, buyers would be able to get a £36,000 mortgage on a £10,000 salary – enough to buy a two-bed flat in Belfast, a one-bed flat in Stourbridge or a 0.64 acre building plot in Inverness.
Terraced houses in Birmingham and Torquay come into reach for borrowers earning £25,000 – but the first property in London, a one-bed flat in Ealing, is not available for first-timers earning less than £50,000 on a deposit of 10%.
Abbey says that failing to properly budget before even looking for a house is a common mistake among first-time buyers.
Guy Aldwinckle, head of mortgage marketing at Abbey National, says: “The key piece of advice for all prospective housebuyers is to budget carefully to determine exactly how much is affordable well in advance of the property search. That way borrowers can set themselves a goal to aim for in terms of saving for a deposit and viewing the right type of property.
“Our mortgage agreement in principle will tell people exactly how much they can borrow determined by their income, deposit and affordability and not just strict income multiples, saving time and worry and putting them ahead of the game when they find the property they want.”
For those looking to save for a deposit, Abbey National has recently launched a dedicated savings account called First Home Saver. Savers are encouraged to let their savings grow, as the account pays 3.5% gross per annum interest each month when no withdrawals are made.